Debit card chargeback problem

PXE35

Hi, there are 3 payday loans included as part of my DMP

My first payment via Payplan is next week.

My tax credits were paid into my old account last week that i had in place before the DMP (ongoing they will be paid into my new basic account that i set up)

Anyway, on checking my balance last week, the account balance was 15p as two of my payday loan lenders had cleared my account in varying transactions.

Both companies defaulted me and are aware of the DMP and have accepted their offers via debt collection agents

On realising my account had been cleared, i rang my bank and explained that upon these two loans defaulting, i wrote to the company advising of the DMP and revoking any authority for them to debit my bank account by direct debit or debit card. The bank agreed to refund my account and transferred the missing money to my new account for me. They also cancelled the card and issued me a new one.

I rang both loan companies that day who advised their systems would keep trying to take payment by card but agreed to try to stop this now that the DMP was in place.

On checking the account today, the bank have deducted the amounts from my account leaving me in an unauthorised overdraft.

I was advised that the deductions were made by the fraud department. No-one contacted me to advise this was happening and all of the deductions show as cash.

If anyone has any advice on whether i have any rights regarding these chargebacks, i'd really appreciate it. I'm now heavily overdrawn with no way of paying this money back as i am on a very tight budget with the DMP.

I really could do without this stress at the moment as i'm 17 weeks pregnant and am already on bedrest due to complications

Thanks

P x

Oneday77

As for getting the money back from the Sharks I'm afraid you probably can't.
Appeal to your bank again and see what happens, worth a try.
Also advise them not to charge you on the overdraft as they agreed to make the payments into that account after what I assume you told them the full truth as to what had happened.
I would open an account with the Co-op, a basic account but it gets you away from a bank that doesn't seem to care about you.
Also contact Payplan and advise them what has happened, to be fair they should have told you to get no money paid into your old account.

PXE35

Oneday77 wrote: »

As for getting the money back from the Sharks I'm afraid you probably can't.
Appeal to your bank again and see what happens, worth a try.
Also advise them not to charge you on the overdraft as they agreed to make the payments into that account after what I assume you told them the full truth as to what had happened.
I would open an account with the Co-op, a basic account but it gets you away from a bank that doesn't seem to care about you.
Also contact Payplan and advise them what has happened, to be fair they should have told you to get no money paid into your old account.

Thank you for the reply.

I told the bank the 100% truth about the situation. The advisor even agreed with me that cancelling the card was necessary as they could keep trying my account whenever they felt like it.

The tax credits should have gone into my new account and i rang them after what happened last week and they confirmed from June, the money will definately go into my new account.

I didn't think to cancel the card which was stupid of me.

This is all my fault and i understand that the loan companies want their money but both agreed it was due to their systems which seeing as the money was taken during the early hours of the morning makes sense.

The bank had no problem at all refunding me so i'm really upset that after 4 days they have changed their mind.

Not sure what to do next

Oneday77

Don't go blaming yourself.

Payday Loan style companies are legalised Loan Sharks with no morals or ethics.

Contact the bank and ask to speak to someone of authority. Explain the situation and see what they say.
Also speak to payplan, they may defer this months payment, may help offset the payday OD situation.

Worrying won't fix it so why bother

timbstoke

You'll need to be firm with the bank - they'll almost certainly try to tell you that the transaction was authorised by you. Be very clear that you have already told both the recipient and the bank that transactions to the payday loan co was not in any way authorised, and insist on a full chargeback - if they resist, ask to invoke their complaints procedure, and explain that you intend to go to the ombudsman if you're not satisfied. If you're able to get another account, it could be worth asking the bank to freeze your existing account so that no further attempts to take payment can cause you to incur bank charges. That'll mean coming to an arrangement with them to clear any existing overdraft, which you may be able to deal with via your DMP.

One thing MSE has taught me is that these people will basically do a legalised version of what someone who has stolen your card will try to do - if a transaction is refused, they'll try smaller and smaller amounts until one goes through. They'll even try and set up DD's, which some banks will charge you £30+ each time they decline! The situation needs to be treated in the same way as you'd treat any other instance of your card details being compromised - cancel the lot and start again.

Good luck!

PXE35

Thank you both for the advice

This account was about to be closed as it was the old one.

My worry is that one of the loan companies has in their credit agreement that they can basically keep trying to take what they are owed. Ironically the banks fraud department rang me 2 days before this happened as one of the loan companies tried to set up a direct debit for £350 a month when I only owed them £210 in the first place. Thankfully the fraud dept intercepted it and contacted me to see if it was genuine.

It's just a huge step back as I can't think how i will repay this money now. Until 3 weeks ago, I was working 3 jobs, 7 days a week to clear some of the smaller debts but due to a threatened miscarriage, I am now off on potentially long term sick with no pay from the two part time jobs as I only started them both recently

Sorry to go so much

Thanks again

P x

PXE35

Hi, just to update from yesterdays posts. The Bank have refused to refund me as the chargebacks were not done correctly as the Advisor only removed them from my pending transactions so when they finally debited, as the card had been cancelled, the fraud department processed them by debiting my account. They have offered to refund any charges but to get the money back, it's viewed as a dispute and i know neither of the loan companies will redund me